1
                       [CKE RESTAURANTS, INC. LETTERHEAD]

                                                                    EXHIBIT 99.1

                                                                    NEWS RELEASE

FOR:     CKE Restaurants, Inc.

CONTACT: Loren Pannier
         Senior Vice President
         (714) 778-7163

         Mike Shea
         NationsBank of Texas, N.A.
         (213) 236-4915

                                                           FOR IMMEDIATE RELEASE


                        CKE RESTAURANTS, INC. IS EXTENDED
                           $75 MILLION LINE OF CREDIT


ANAHEIM, Calif. -- August 20, 1996 -- CKE Restaurants, Inc. (NYSE:CKR) announced
that effective August 12, 1996, the Company has entered into a $75 million
credit agreement with NationsBank of Texas, N.A. and a group of financial
institutions. Under the terms of the agreement, CKE borrowed the principal
amount of $20 million under a five-year, fully amortizing term loan, the
proceeds of which were used to repay existing indebtedness.

     The credit agreement also provides CKE with up to an additional $55 million
in revolving credit facilities. "This agreement allows us to have working
capital at our fingertips and affords us increased flexibility in enhancing our
growth strategy," said William P. Foley II, CKE's chairman and chief executive
officer.

                                   -- more --
   2
CKE CREDITLINE
PAGE 2


     This Credit facility replaces CKE's existing $44 million credit facility,
whose term would have expired August 31, 1996. The new revolving credit
facilities will mature on July 31, 2001.

     CKE Restaurants, Inc. is the parent of Carl Karcher Enterprises, Inc., and
Summit Family Restaurants Inc. Carl Karcher Enterprises, along with its
franchisees and licensees, operates 660 Carl's Jr. and 28 Rally's quick-service
restaurants, primarily located in California, Nevada, Oregon, Arizona, Mexico
and the Pacific Rim. Summit Family Restaurants Inc. has restaurant operations in
nine western states including 76 Company-operated and 24 franchised JB's
Restaurants, 6 Galaxy Diner restaurants and 16 HomeTown Buffet restaurants.

                                      # # #